Coca-Cola: Hindustan Coca-Cola Beverages (HCCB), the Indian bottling arm of Coca-Cola, is planning to lay off around 300 employees as part of an internal effort to improve profitability and streamline operations, according to people familiar with the development. The decision has been communicated internally over the past two weeks. HCCB employs nearly 5,000 people across the country and operates 15 manufacturing plants, which bottle and distribute brands such as Coca-Cola, Thums Up, Sprite, Minute Maid and Kinley packaged water.
Company Calls Move Part Of Regular Review
Responding to media queries, an HCCB spokesperson said the exercise is part of a routine business review. “Staying aligned with evolving business needs requires us to periodically reassess our capabilities and organisational structure, and take corrective steps where necessary,” the spokesperson said.
The company described the planned job cuts as limited in scale and said they would not disrupt day-to-day operations. The spokesperson added that such reviews are carried out from time to time to maintain efficiency and competitiveness.
People aware of the matter said the workforce reduction could impact around 4–6% of employees. The layoffs are expected to span multiple verticals, including sales, supply chain, distribution and bottling functions at manufacturing facilities.
Changes Come Under New Leadership
The restructuring is taking place under new leadership at HCCB. In July this year, the company appointed Hemant Rupani as its new chief executive officer. Rupani previously held a senior leadership position at Mondelez International and succeeded outgoing CEO Juan Pablo Rodriguez.
Sharp Drop In Profits Adds Pressure
The planned layoffs also come amid a steep decline in the company’s financial performance. According to regulatory filings accessed through business intelligence platform Tofler, HCCB’s net profit plunged 73% to ₹756.64 crore in FY25, while revenue from operations fell 9% to ₹12,751.29 crore.
The company attributed part of the profit decline to a high base effect in FY24, when it sold bottling operations in multiple regions. These divestments included units in Rajasthan, Bihar, the north-east and parts of West Bengal, which were sold to franchise bottlers Moon Beverages, Kandhari Global Beverages and SLMG Beverages.
Franchise Model Impacts Financials
Coca-Cola operates a franchise-led model in India, supplying beverage concentrate to independent bottling partners who manufacture and distribute products in assigned territories. As a result, changes in bottling ownership directly influence the company’s reported revenues and profitability.
Weak Demand, Weather Disruptions Hurt Sales
Beyond restructuring, challenging demand conditions also weighed on performance during FY25. According to sources, beverage consumption was hit by unseasonal and heavy rainfall, which disrupted sales during the critical summer months.
The period between March and September, particularly the April–June quarter, typically accounts for the largest share of annual sales for soft drink makers. However, irregular weather patterns during this peak season led to lower volumes across the industry.
India’s soft drinks market is estimated to be worth nearly ₹60,000 crore, and subdued demand during peak months had a direct impact on beverage manufacturers, including HCCB.
